Skyepharma slides as US group ends asthma drug deal

Shares in Skyepharma have fallen around 5% after another setback for its asthma treatment flutiform.

The company has announced that Abbott Laboratories has ended its deal to market flutiform in the US after the drug hit regulatory problems. The US Food and Drug Administration refused approval of the treatment in January and in June set heavier than expected demands to reconsider. These included significant additional clinical trials, and a large safety study after any approval.

Dr Ken Cunningham, Skyepharma's chief executive, said it had not given up on launching flutiform in the US and could still seek a new partner. In the meantime it said the drug was still under review in Europe. He said:

Given the delay in obtaining approval for flutiform in the US we are not surprised that Abbott has decided to terminate its interest in the product. However Skyepharma is continuing to investigate whether there is a viable way forward in the US. In the meantime flutiform is under review in Europe, which remains a very big market for inhaled combination products for asthma.

Skyepharma is currently down 2p at 38p while GlaxoSmithKline - whose advair treatment would face competition from flutiform - has added 11p to 1201.5p.